wind farm guide for host landholders
Overview of wind energy in NSW Prospecting Understanding potential impacts Negotiating agreements Planning and Development Engaging with local stakeholders Construction Operation Decommissioning Where to go for more advice This Wind farm guide for host landholders 1. has been prepared by GHD Pty Ltd (“GHD”) for the NSW Farmers’ Association (“NSW Farmers”) 2. may only be used and relied on by NSW Farmers; 3. must not be copied to, used by, or relied on by any person other than NSW Farmers without the prior written consent of GHD; 4. may only be used for the purpose of assisting wind farm host landholders in NSW (and must not be used for any other purpose).
GHD and its servants, employees and officers otherwise expressly disclaim responsibility to any person other than NSW Farmers arising from or in connection with this Guide.
To the maximum extent permitted by law, all implied warranties and conditions in relation to the services provided by GHD and the Guide are excluded unless they are expressly stated to apply in this Guide.
The opinions, conclusions and any recommendations in this Guide are based on assumptions made by GHD.
GHD expressly disclaims responsibility for any error in, or omission from, this Guide arising from or in connection with any of the Assumptions being incorrect.
Subject to the paragraphs in this section of the Guide, the opinions, conclusions and any recommendations in this Guide are based on conditions encountered and information reviewed at the time of preparation and may be relied on until 2014 after which time, GHD expressly disclaims responsibility for any error in, or omission from, this Guide arising from or in connection with those opinions, conclusions and any recommendations.
This guide was developed by:
GHD
Level 15, 133 Castlereagh St
Sydney, NSW 2000
T: +61 2 9239 7100 | F: 61 2 9239 7199 | E: [email protected] Contents
Foreword iii 8. Construction 33
1. About this guide 1 8.1 Construction of access roads 33 8.2 Access considerations 33 1.1 Who should read this guide? 1 8.3 Turbine Construction 34 2. Checklist for host landholders 3 8.4 Stock Management 34 3. Overview of wind energy in NSW 7 8.5 Ecological and environmental considerations 34 3.1 Renewable energy targets 7 8.6 Safety and traffic 34 3.2 Renewable energy precincts 7 8.7 Construction noise 35 3.3 Summary of current NSW wind energy projects 8 8.8 Temporary buildings and parking 35 4. Prospecting 11 9. Operation 37 4.1 Can I approach a wind farm developer? 11 9.1 Wind Farm Regulation 37 4.2 What do I do if I am approached by a developer? 11 9.2 Maintenance and monitoring 37 4.3 How to deal with multiple developers 11 9.3 Management of tourist traffic 37 4.4 Probability of development going ahead 11 10. Decommissioning 39 4.5 Wind resource assessments 12 10.1 Wind farm lifespan 39 5. Understanding the potential impacts 15 10.2 Developers right for early lease termination 39 5.1 Impact on farming activities 15 10.3 Developer rights and obligations during 5.2 Impact on amenity 17 decommissioning 39 5.3 Health impacts 19 11. Where to go for more advice 41 5.4 Social/community impacts 19 11.1 NSW Farmers 41 5.5 Positive impacts 19 11.2 Renewable Energy Precinct Coordinators 42
6. Negotiating an agreement 21 11.3 Other key resources 43 6.1 Obtaining legal and financial advice 21 6.2 Typical contract arrangements 21 6.3 Other types of legal agreements and arrangements 23 6.4 Group negotiation 24 6.5 Financial considerations and restrictions 25 6.6 Case Study: Charlie Prell, ‘Gundowringa’, Crookwell 27 7. Planning and Development 29 7.1 The NSW Wind Farm Planning Process 29 7.2 Engaging with local stakeholders 30
i Contents
Table Index Figure Index
Table 1 Common landholder rights and obligations Figure 1 Cattle grazing at Toora Wind Farm, Vic 1 within lease agreements 22 Figure 2 Phases in the development of a wind farm 1 Table 2 Key steps in the planning process for SSD (as at December 2012) 29 Figure 3 NSW Renewable Energy Precincts 7
Table 3 NSW Renewable Energy Precinct Figure 4 NSW wind speeds and wind farms 2012 8 Coordinators 42 Figure 5 Capital Wind Farm, NSW 9 Table 4 Key organisations 43 Figure 6 Wind farm site visit 15 Table 5 Key documents 44 Figure 7 Sheep grazing near turbines, Clements Gap Wind Farm, SA 15
Figure 8 Building of substation, Bungendore, NSW 16
Figure 9 Laying cable, Bungendore, NSW 16
Figure 10 Capital Wind Farm, NSW 17
Figure 11 Codrington Wind Farm, Victoria 17
Figure 12 Relative noise levels 18
Figure 13 Typical contract arrangements 21
Figure 14 Sunrise at Waterloo Wind Farm, SA 23
Figure 15 Clements Gap Wind Farm, SA 26
Figure 16 Construction of Woodlawn Wind Farm, Bungendore, NSW 33
Figure 17 Road construction, Woodlawn Wind Farm, Bungendore, NSW 33
Figure 18 Turbine Base Construction, Woodlawn Wind Farm, Bungendore, NSW 34
Figure 19 Turbine Base Construction, Woodlawn Wind Farm, Bungendore, NSW 34
Figure 20 Turbine Construction, Woodlawn Wind Farm, Bungendore, NSW 35
Figure 21 Access road to turbine 37
Figure 22 Sunset at Waterloo Wind Farm, SA 39
Figure 23 NSW Farmers Regional Service Managers and other contacts 41 Foreword
Increasingly, regional NSW is being confronted by land use change as our food and fibre producing lands also begin to play a role in meeting the needs of our energy dependent world. In addition to the expansion of coal mines and, more recently, coal seam gas – we are also now important players in the development of the wind, solar and biofuels industries. These changes are confronting and must not be embraced without first answering serious questions about how they will impact on our farmers and their local communities.
NSW Farmers is acutely aware of the angst these changes are causing in rural communities, and the legitimate concerns farmers hold about impacts on their businesses. That’s why we’re lobbying for frameworks that safeguard our members’ interests and give communities a voice in the development process. At the same time, we’re making sure members have the information they need to make informed choices when dealing with energy and resource companies.
NSW Farmers has not been given a direction by its members to either support or oppose wind energy, but we do see ourselves as having an obligation to inform members who are approached to host turbines. It was with that in mind that we commissioned the Wind Farm Guide for Host Landholders.
The decision to host wind turbines will be one of the most complex and long-term choices many farmers will make for their business. This document is intended as a starting point for landholders who are making that decision. While it won’t contain every answer, we hope it will explain what to expect over the life of a project and help landholders ask the right questions.
The generational land use changes taking place in NSW haven’t been and won’t be easy. Through our lobbying role and resources like this we hope to limit the impact on farmers and we always welcome input from members about what else we can do to support them in growing the best.
NSW Farmers would like to thank all those who contributed to the development of this guide, including the NSW Office of Environment and Heritage, landholders who participated in focus group meetings and the Clean Energy Council who provided input.
Fiona Simson President NSW Farmers
iii
About this guide 1
This Wind Farm Guide for Host Landholders (the Guide) has The Guide is not intended for landholders wishing to establish been produced by the New South Wales Farmers’ Association small wind turbines (i.e. less than approximately 10kW). For (NSWFA) with funding from the New South Wales (NSW) Office further information on small wind turbine developments refer of Environment and Heritage (OEH). to the OEH ‘NSW Small Wind Turbine Consumer Guide 2’. Crown lease developments With increasing interest in the development of wind energy projects in NSW, a growing number of landholders are With regards to hosting wind turbines, Crown leaseholders may considering hosting wind turbines on their property. This have different considerations from freehold landholders. These are Guide provides information and guidance for landholders in discussed in Section 6.3.3. NSW on hosting wind turbines. 1.1.1 Structure of the guide The Guide is not a legal document and does not replace legal advice. Every effort has been made to ensure accuracy in this The Guide is structured in a way which walks landholders document. However, the items are necessarily generalised and through the different stages of a wind farm development, readers are urged to seek specific legal advice on particular addressing the specific issues they are likely to face each phase. matters and not rely solely on this text. Statements in the Guide (see Figure 2 below). do not necessarily reflect the opinions of NSWFA or the NSW Government. The Guide also includes (in Section 2) a checklist of questions which landholders may wish to consider and discuss with developers. Understanding the potential Impacts Negotiating an Negotiating
Prospecting 6-12 months (Chapter 4)
Agreement Planning and Development 1-3 years (Chapter 7)
(Chapter 6
Construction 1-3 years
(Chapter 5) ) (Chapter 8)
Figure 1 Cattle grazing at Toora Wind Farm, Vic1
Operation 1.1 Who should read this guide? 20 years + (Chapter 9) This Guide is designed as a resource for landholders who: • are considering hosting wind turbines on their property; • are in the process of having wind turbines developed on their property; or • already host wind turbines on their property. Decommissioning 6 months (Chapter 10) The guide provides information to assist landholders at all stages of development and operation, particularly: • the role of landholders in the development process; • landholder rights and responsibilities; and
• potential impacts (positive and negative) of development. Figure 2 Phases in the development of a wind farm
Wind Farm Guide for Host Landholders 1 Wind Farm Guide for Host Landholders 2 Checklist for host landholders 2
The following table lists common questions for landholders to ask or consider when dealing with a wind farm developer during the different chapters of this guide:
Chapter Common questions Addressed For more info, go to Sections Prospecting • Is my property suited to wind energy? Should I approach a developer? 3.3, 4 • What is the developer’s track record with wind farm projects? 4.2 • What size will the wind farm be? How many turbines and what generating 4.2, 4.5 capacity? When will it be constructed?
• How will the developer determine site feasibility? 4.5 • What access arrangements will the developer require for site feasibility 4.5.2, 6.2.1 assessments? How often and for how long will access be required? Who will be accessing my property? What will be the biosecurity protocols? Will I receive any payments? • Will a wind monitoring mast be installed on my property? What will be the 4.5.2 footprint of the monitoring mast and how will it restrict farming activities? Will additional legal arrangements be required (eg. indemnity)?
• Do I own my property or is it Crown leasehold? 5.1 Understanding the • Would wind turbines affect farming activities (e.g. land use, management 5.1 potential impacts issues, aerial agriculture, fire management)? • What impact would wind turbines have on land value, development, 6.5 vegetation protection (PVPs) and subdivision options?
• What other potential impacts are likely to be concerns for the community 5 (e.g. visual, noise, ecological, transport, social/community, economic impacts)? How are these being assessed and managed?
• Is it possible to go on a wind farm tour and/or meet landholders from an 5 operational wind farm?
Negotiating an • Is professional advice on the legal/financial/tax issues required? Who will 6, 6.5 agreement cover the costs of this advice? • If multiple developers have presented proposals, how do they compare? 4.3
• Should I form a group with other landholders? 6.4
• Who will prepare the first draft of the lease agreement(the developer or the 6.2.2 landholder)?
• In what circumstances can parties withdraw from the agreement? What are 6.2.2 the consequences?
• Can the developer change the number or siting of turbines once the 6.2.2 agreement is signed?
• What are the key milestones in the contract? If the agreement is an option to 6.2.2, 6.2.3 lease, what is the process for the agreement becoming a lease?
• How long will the agreement apply for? How long will the wind farm be 6.2.2 operational for? Can the agreement be renewed or extended?
Wind Farm Guide for Host Landholders 3 Chapter Common questions Addressed For more info, go to Sections • How are payments calculated (eg. based on number of turbines, land area, 6.5.1 generation, value of generation etc.) • How often will there be payments under the agreement (annual, quarterly, 6.5.1 monthly basis)?
• When will construction commence? When does remuneration under the 6.2.2 agreement commence?
• How likely is it that the development will proceed? What happens if the 3.3, 4.4, 6.2.2 development does not proceed (or proceeds at a reduced scale)?
• What is the value of the contract over the life of the project? Do the 6.5.1 payments change over time?
• What issues need to be negotiated at a preliminary stage? What matters of 6.2.2 detail can be left until a later stage?
• Will the developer operate the wind farm once constructed? If not 3.3.1 what will be the process for transfer of the wind farm (and landholder
• Will the agreement restrict any future land uses (eg. agroforestry, quarrying 6.5.5 etc)?
• Does the agreement adequately compensate for any production losses 5.1 that may result from the wind farms operation (eg. changes to aerial agricultural that might be required etc)?
Planning and • What level of involvement will the developer expect from landholders 7.2 Development during the community consultation process?
• Has the developer been speaking with the local council? Or any local 7.2.1 community groups? What is the developer’s community consultation plan?
• Will a Community Consultative Committee be established? What 7.2.2 opportunities will there be for landholders involved?
• Have neighbours been advised of the project? If not, when will neighbours 7.2.3 be told (and how?)
• What will be the process for ensuring landholders have access to all 7.2.1 reports and assessment data used during the planning approvals and environmental impact statement processes?
• What will be the process for managing objections and complaints? Who 7.2.7 will be responsible for responding to these?
4 Wind Farm Guide for Host Landholders Chapter Common questions Addressed For more info, go to Sections Construction • How long will construction take? 8 • Who will be the construction contractor and how will they be able to be 8 contacted? • What restrictions will construction place on farm operations? 8.4
• How is the developer going to manage access and gate locks? Are any 8.2 special biosecurity requirements required?
• What temporary buildings and infrastructure will be required for the 8.8 construction phase?
• What control will developer have over contractors used during the 8 construction phase?
• How many people will be on site during construction? What will be the 8 hours of work? • Will my affected land and farm infrastructure be rehabilitated/replaced 8.5 following construction? Operation • How often will turbine maintenance occur? 9.1
• How will emergency access to the turbines be managed? 9.1
• Who will be responsible for obtaining the necessary insurances? Who will 6.5.6 be legally liable for the turbines and their operation? Who will cover any increased insurance costs?
Decommissioning • What will be the process for determining whether a wind farm will be 10.2 decommissioned or reconditioned? • What is the developer’s decommissioning and rehabilitation plan? How will 10.3 it be funded?
• What will be the timing for rehabilitation activities? 10.1
• What part of the wind turbine structures will be removed and how will the 10.3 site be remediated?
• What quality assurance processes will be used to ensure that weeds are not 10.3 introduced on to the property with rehabilitation plant species?
Wind Farm Guide for Host Landholders 5 6 Wind Farm Guide for Host Landholders Overview of wind energy in NSW 3
This Section provides landholders with a broad overview of the NSW wind energy sector including:
• an overview of the NSW Government’s renewable energy target and precinct program;
• a summary of current NSW wind energy projects; and
• the different types of companies in the wind sector.
3.1 Renewable energy targets
The NSW Government has a NSW 2021 target of 20% renewable energy by 2020. The Government has prepared a draft Renewable Energy Action Plan to support the achievement of this target.
3.2 Renewable energy precincts
The NSW Government has established six renewable energy precincts in areas recognised for strong wind resources. The precincts (shown in Figure 3 below) cover 46 local government areas in regional NSW.
The Renewable Energy Precincts program is a community partnership initiative designed to give local communities a voice and a stake in renewable energy development. In each precinct there is a dedicated full-time coordinator who provides “on the ground” support for the local community - including landholders.
The Renewable Energy Precincts program has provided funding for the development of this Guide in order to improve the resources available to landholders. Landholders are encouraged to contact their local coordinator for more information on the precincts program and the services it can Figure 3 NSW Renewable Energy Precincts3 provide. Contact details are provided at the end of this Guide.
Wind Farm Guide for Host Landholders 7 “It can be unsettling when you are dealing with one developer and then suddenly the project changes hands, but it’s often for the best. The different phases of development, construction and operation are best suited to companies with different expertise.” —Comment from wind farm landholder (2012 Focus Group)
3.3 Summary of current NSW wind energy projects NSW Wind Farms Last Updated: 19 July 2012 NSW offers excellent conditions for wind farm development with a number of locations enjoying suitable wind conditions Average Wind Speed (80m height, 3km resolution) and good access to the electrical grid network. In 2012 there Low High were four large-scale wind farms operational in NSW. There are Wind speed layer reproduced with permission from Windlab Systems Pty Ltd however a number of additional wind energy projects which have been approved or are in the planning pipeline. Figure Approved wind farms Application received 4 below shows the wind speeds across NSW, current wind Wind farm numbering in map area is from top to bottom Installed / construction Turbines Turbines energy projects and projects under development. A C A1 Kooragang - removed* 1 C1 Sapphire 159 A2 Blayney - installed* 15 C2 Ben Lomond - lapsed 100 A3 Hampton - installed* 2 C3 Liverpool Range 550 A4 Crookwell 1- installed* 8 C4 Bodangora 40 A5 Crookwell 2- construction* 46 C5 Crudine Ridge 80 A6 Gunning - installed* 31 C6 Flyers Creek 40 A7 Cullerin Range - installed* 15 C7 Paling Yards 60 A8 Woodlawn - installed* 23 C8 Golspie 170 A9 Capital - installed* 67 C9 Rugby 90 A10 Taralga - construction* 61 C10 Bango 200 C11 Rye Park 110 Construction not commenced C12 Crookwell 3 35 B B1 Glen Innes 25 C13 Yass 152 B2 Nowlands Gap - lapsed* 4 C14 Birrema 80 B3 Kyoto 42 C15 Collector 80 B4 Black Springs 9 C16 Adjungbilly 25 B5 Gullen Range 73 C17 Deepwater 10 B6 Conroys Gap 15 C18 Unungula 330 B7 Snowy Plains - lapsed* 14 B8 Boco Rock 122 *Approved under Part 4 of the
B9 Silverton (off map) 598 Environmental Planning and
B10 Capital II 41 Assessment Act 1979 (NSW) B11 White Rock 119
Figure 4 NSW wind speeds and wind farms 20124
8 Wind Farm Guide for Host Landholders Electricity grid operators Wind farms will require a connection to the electricity grid. This will normally be achieved through negotiations between the wind farm developer and the appropriate grid operator (also known as a “Network Service Provider”). The operator that the wind farm developer has to negotiate with will depend on the wind farms location and whether the connection is to the State electricity transmission network or the more local distribution network.
Electricity retailers Normally in NSW a wind farm operator is only able to sell electricity to an electricity retailer. Commonly wind farm operators will have a Power Purchase Agreement (PPA) for the sale of some or all of the electricity generated from the wind farm to an electricity retailer. A wind farm PPA will also normally Figure 5 Capital Wind Farm, NSW5 give the electricity retailer the right to claim Renewable Energy Certificates for the power generated from the wind farm. The 3.3.1 The commercial wind industry electricity retailer on-sells the electricity from the wind farm to end-use consumers (residential, commercial and industrial There is a developing commercial wind industry in NSW. The consumers). key types of business in the industry are:
Wind farm developers Wind farm development companies can use a number of different models for developing wind farm projects. Some companies will be responsible for all stages of development, whereas other companies will only develop a project to a certain stage before on selling the project to another entity for the construction and/or operation project phases. Like in any industry wind farm projects can be transferred at any stage of their operational life. Planning approvals are normally transferable between project owners.
Wind farm operators Wind farm operators are sometimes (but not always) the same entity as the wind farm developer. Wind farm operators manage the operational life of the wind farm asset (including decommissioning) and generate revenue by selling electricity output from the wind farm to the electricity market.
Wind Farm Guide for Host Landholders 9 Wind Farm Guide for Host Landholders 10 Prospecting 4
When determining whether sites are suitable for wind turbines, • The reputation and track record (in Australia) of the developers will take into consideration a number of factors, company approaching you - are they a company you want usually including the following: to do business with? Can you speak with the developer’s current host landholders? • wind regime: wind speed and direction, as well as how • The timeline for wind farm development and how the wind speed varies with height above ground and progressed the planning and assessment process is. how turbulent the wind is(affected by hills and other obstructions such as tree shelter belts). • What are the potential benefits of the development? What are the potential impacts (and how does the company • proximity to electrical grid: location of nearest plan to address them)? See discussion below in Section 5. connection point to distribution or transmission network (building a connection to the electrical grid is very • What are the commercial terms? See discussion below in expensive therefore sites which are closer to connection Section 6. points are preferable). • Do they understand your community and the local • access: suitability of roads for movement of large vehicles environment? See discussion below in Section 7.2. including trucks and cranes; • environmental: cultural and heritage importance of site, 4.3 How to deal with multiple developers flora and fauna species (particularly birds and bats), visual amenity; If you have already entered into an agreement with one • geotechnical: geology of site and suitability for wind developer, the terms of that agreement may prevent you from turbine footings; and negotiating with other developers. You should seek legal advice if you are unsure of your rights in these circumstances. • existing land uses: compatibility with current and planned uses. Dealing with multiple developers may improve your bargaining • community attitudes: the level of acceptance and power. There can, however, be a number of factors that support for the project amongst adjacent landholders and need to be considered when comparing offers from multiple the community. developers. In particular the likelihood of a project coming • available space: the size of the holdings and distance to to fruition and when you will start to receive income might be nearest dwellings. relevant. Again, legal advice may help in understanding and comparing different offers. 4.1 Can I approach a wind farm developer? 4.4 Probability of development going ahead Most wind farm developments have occurred on land where the wind farm developer has approached the landholder. There There are a number of steps which must occur before a are however, examples of development occurring where a wind wind farm is built. The site must be monitored and tested, farm developer has first been approached by a landholder. environmental assessments undertaken, planning approval granted and landholder negotiations completed. All the However landholders should be aware that the not all “windy” while the project must remain commercially viable and the sites are suitable for wind farm development (see factors listed development company committed to the investment. above). Often only a small portion of approached landholders will end 4.2 What do I do if I am approached by a developer? up hosting turbines on their property. It is also common for projects to change in terms of scale and design from the original If you are approached by a developer you will need to decide plans. The turbine layout can change significantly during the whether you want to become involved in the proposed development phase of the project; as a result landholders may development. At a preliminary stage relevant considerations end up with a reduced number of turbines on their property, or may include: none at all.
Wind Farm Guide for Host Landholders 11 “When you are first approached you don’t want to get carried away, because it may not go ahead, and if it does it will be at least 5 years off. At the same time, it’s important to start to become informed, and talk with your neighbours.” —Comment from wind farm landholder (2012 Focus Group)
4.5 Wind resource assessments Landholder access agreements developed at the beginning of the prospecting phase (see Section 6.2.1) usually include The wind resource at a site has a significant impact on provisions for establishment of met mast towers (if needed). potential wind farm income. Small differences in a wind This can include additional remuneration for landholders. resource can significantly affect actual revenue over the life of a project. Financing for wind farm development is dependent In NSW rural zones, planning consent is required to erect met on accurate and credible wind resource data. mast towers over 35m in height (other conditions also apply)6. Installation of a met mast may also signal to other community Significant resource assessment will therefore be required members that your property is under consideration for a wind before a wind farm can be developed. A site’s potential will farm development. be assessed by first conducting wind modelling activities (analysing existing data), before actual wind monitoring is carried out (using on-site monitoring equipment). The aim of wind monitoring is to estimate how much energy can be extracted from the wind for the life of a project. 4.5.1 Wind modelling Long-term measurement (over multiple years) can therefore improve the accuracy of prediction by taking account of If good quality long-term wind data is available from a nearby seasonal variations and longer-term weather cycles. site (e.g. from a Bureau of Meteorology weather station), statistical modelling can be used to take wind data over a shorter period and extrapolate into the future.
Once data for wind speed and direction is obtained for a site, modelling software can estimate the wind behaviour for the surrounding area using topographic information. This technique is only used within a few kilometres of a monitoring location, because accuracy reduces further away.
Wind resources can also be modelled using altitude weather data instead of ground measurements. These techniques are useful in identifying areas with good wind potential.
4.5.2 Wind monitoring
Monitoring masts (often called ‘met masts’) are installed at suitable representative locations to support anemometers (measuring wind speed), wind vanes (measuring wind direction) and other measurement devices. They are typically between 60 to 80 metres high and are fixed by cables (‘guy wires’). They are usually narrow (20 to 45 cm in width) and dark in colour, and so have minimal visual impact beyond their immediate vicinity. Tubular galvanised towers 10 to 15 cm in diameter may also be used.
Guy wires can have a footprint equal or greater than the eventual turbines. Because of their height, they may need a light if they are near an airport. Lattice towers may need to be metal-clad for the initial three metres to prevent people from climbing them.
12 Wind Farm Guide for Host Landholders Wind Farm Guide for Host Landholders 13 Wind Farm Guide for Host Landholders 14 Understanding the potential impacts 5
This Section aims to outline some impacts that may result from wind farm developments, keeping in mind that impacts will vary between developments.
A visit to an operational wind farm can be an extremely worthwhile exercise for landholders to get a first-hand experience of a wind farm and meet host landholders who have been through the development process.
Figure 7 Sheep grazing near turbines, Clements Gap Wind Farm, SA8
5.1.1 Land use
The land required for wind farm developments is generally minimal. Land is required for the tower (about 100 m2 each) and access roads (usually gravel, between 6 and 12 m in width) running between each turbine. Depending on the development Figure 6 Wind farm site visit7 a substation may also need to be established (potential footprint up to 1 Ha). Substations will be fenced off to meet 5.1 Impact on farming activities safety regulation.
Host landholders generally find that wind farm development Electrical cabling is buried underground (usually alongside does not significantly impact farm operations. Some common access roads). considerations are discussed below. Remuneration from hosting wind turbines generally outweighs any loss of production. Landholders can negotiate with developers ways to minimise production losses (such as by siting turbines and roads on less productive areas of the farm).
Wind Farm Guide for Host Landholders 15 Risks associated with fire normally have to be addressed in the project Environmental Impact Statement (EIS) and in Environmental Management Plans produced as a requirement of planning approval. Developers may also seek input from the NSW Rural Fire Service (RFS) to develop a wind farm design which minimises on-farm fire risks and is consistent with regional Bushfire Risk Management Plans. 5.1.5 Management issues
During the construction phase there may be short-term land access restrictions. Stock will need to be excluded from construction areas and new fencing may be required. This can, however, provide an opportunity for development of laneway systems for stock movement.
The construction phase will involve a large number of vehicles entering the property and without proper controls there is Figure 8 Building of substation, Bungendore, NSW9 an increased risk to farm biosecurity and weed incursions. Landholders should therefore develop clear controls for 5.1.2 Water use vehicle access (including contractors) during negotiation of the lease agreement. Wind farms do not use water nor is there any significant risk of ground water contamination. Host landholders generally find that once a wind farm is operational livestock quickly become accustomed to the 5.1.3 Aerial agriculture moving turbines and are happy to graze in their vicinity and seek shelter in the shadows. In some instances activities that Wind turbines may, in some circumstances, affect aerial might attract birdlife (eg. lambing and calving) are, however, application of fertiliser and chemicals. Pilots may not be not able to occur in areas close to turbines. willing to operate in certain areas depending on: For more information on construction impacts, see Section 8. • the number of turbines; • the distance between turbines; • the landscape; and • whether the turbines are operating. An agricultural aviation assessment by the developer can determine the effect on aerial agriculture. If capacity is reduced landholders may be able to negotiate compensation from developers to account for additional costs associated with ground spreading/spraying. 5.1.4 Fire management
Wind turbines may also reduce aerial access for bushfire management, although this risk of often offset by improved ground access.
Figure 9 Laying cable, Bungendore, NSW10
16 Wind Farm Guide for Host Landholders Figure 10 Capital Wind Farm, NSW11
5.2 Impact on amenity
Wind farms are highly visible and can attract a great deal of attention, both positive and negative due to their visibility in the landscape. The following section outlines the effects of wind farms and amenity impacts.
Figure 11 Codrington Wind Farm, Victoria12
5.2.1 Visual
Over the years, wind turbines have been built higher, with current projects under development involving towers of up to 120 m and height to blade tip of up to160 m.
The grouping of turbines, positioning on hill slopes, and typical placement in an area void of other types of vegetation can affect the visibility of wind farms within the landscape. Typically in communities, some people consider wind turbines to be a positive addition to the landscape whereas others view them more negatively.
Wind Farm Guide for Host Landholders 17 Shadow flicker Decibels Equivalent The moving blades of wind turbines cast moving shadows that 140 Threshold of pain when viewed through a stationary constrained opening such 135 as a window appears as a flicker. This is commonly referred to as shadow flicker and when the sun is low in the sky the 130 effect of shadow flicker increases. It is generally accepted that 125 Jet taking off shadow flicker can only occur within 1 km.13 120 5.2.2 Dust 115 As wind farm development locations are usually exposed 110 Rock concert windy sites, there is potential for temporary dust nuisance 105 during construction, and from excavated material left on site. 100 Developers can mitigate dust generation by spraying the area with water (accessed from the site or imported). Another 95 Jackhammer near operator potential mitigation measure is to carefully spread excavated 90 material, and seed disturbed areas as soon as possible. 85 5.2.3 Noise 80
Wind turbines generate noise via movement of the blades and 75 Busy city street near curbside internal moving parts. In recent times technical improvements 70 have reduced noise levels. By reducing the energy lost to 65 noise, turbines have become more efficient in converting wind into electricity. 60 Busy office 55 Currently NSW uses the South Australian Wind Farms 50 Environmental Noise Guidelines (2003) in the assessment process for approving wind farms. Under these Guidelines 45 noise levels should not exceed 35 A-weighted decibels or 40 Quiet suburban area the background noise by more than 5 A-weighted decibels, whichever is greater for all relevant receivers at each integer 35 Windfarm Guidelines Baseline wind speed from cut in to rated power of the turbine. This is 30 Quiet countryside because the background noise will change with increasing 25 wind speed. This is one of the strictest limits in the world. The noise threshold limits apply to surrounding landholders 20 Inside bedroom - windows closed that are not associated with the wind farm (referred to as 15 ‘receivers’). Figure 12 provides a comparative analysis of the 10 threshold with other typical noise levels. 05 The Draft NSW Planning Guidelines: Wind Farms14 also use the 0 Threshold of hearing 35dBA criteria. The remainder of the criteria should be added i.e. “or the background noise by more than 5 A-weighted Figure 12 Relative noise levels15 decibels, whichever is greater at all relevant receivers at each integer wind speed from cut in to rated power of the turbine”.
18 Wind Farm Guide for Host Landholders 5.3 Health impacts 5.5 Positive impacts
There have been claims that noise and vibrations from It is important that landholders weigh up the predominately wind farms make people sick (‘wind turbine syndrome’ or negative impacts discussed above with the positive impacts ‘vibroacoustic disease’).The Australian National Health listed below: and Medical Research Council (NHMRC) released a public statement in 2010 reporting no published scientific evidence • Financial remuneration (Section 6.5); to positively link wind turbines with adverse health effects. • New access roads can provide improved access for farm Currently, the NHMRC is conducting a further review of management and fire; scientific literature, the outcomes of which will provide • Vegetation offset requirements could mean planting or guidance for public health policy and expected research. The other rehabilitation is undertaken on the landholders reference group undertaking this review is likely to conclude property; its work by late 2013. • Community benefits from increased jobs and economic activity; and Wind farm lease agreement negotiations and local community pressures may cause stress and anxiety during the wind farm • Environmental benefits from CO2 emission reduction. development process. Specialised support for rural NSW residents is available through the NSW Department of Primary Industry’s Rural Support Program. The Rural Support Program aims to build the capacity and resilience of rural communities through improved knowledge, skills and practices to enable better management of future environmental and other adverse events. Contact details for the Program are at the end of this Guide.
Other resources for anyone who may be distressed also include Lifeline 131 114, Mensline 1300 789 978 and Rural Mental Health Support 1800 201 123.
5.4 Social/community impacts
Some developments may experience community opposition. Early consultation and engagement with the community to build awareness of the project can help effectively resolve concerns. Further information about engagement with local stakeholders is provided in Section 7.2.
At a general level there are strong levels of community support for wind farms in rural Australia flowing from, amongst other things, the employment benefits that result from wind energy developments.
Wind Farm Guide for Host Landholders 19 Wind Farm Guide for Host Landholders 20 Negotiating an agreement 6
This Section outlines the different types of agreements 6.2.1 Access agreements landholders may enter into with developers, and the commercial considerations which commonly need to be taken An access agreement is usually a short term agreement to into account when negotiating an agreement. allow the developer site access to conduct wind monitoring and feasibility studies. This agreement is optional and 6.1 Obtaining legal and financial advice developers might want to move directly to an option to lease agreement which can provide more certainty (see Section Information in this section is only indicative and each wind 6.2.2 below). farm development is different. It is highly recommended that you get independent legal and financial guidance 6.2.2 Option to lease agreements from qualified personal with experience in wind farm developments. An option to lease agreement will normally allow a developer to access the property to assess the wind farm feasibility with Your developer may agree to reimburse the expenses you an option to move into a lease agreement at a later stage. incur in obtaining this independent advice. Lease agreements are usually triggered when developers commence construction on the site. 6.2 Typical contract arrangements An option to lease agreements is usually binding on the There are a range of different legal agreements which can landholder following execution, whereas developers may be used at different stages of wind farm developments. withdraw at any stage before construction commences (when However the most typical arrangements are summarised the lease becomes binding). Landholders should keep in mind in Figure 13 below, whereby landholders enter into initial that there may be little certainty about when (or if) a wind access agreements and/or option to lease agreements during farm developer will be granted planning approval and begin the early stages of development, leading to an eventual construction. lease agreement once the development is approved and construction begins. Option to lease agreements can be negotiated at any stage of development between site selection and planning application. SITE SELECTION Agreement can contain as much or as little detail as the landholder and developer wish to agree upon, for inclusion in the final lease. A common approach is for landholders and PROJECT FEASIBILITY AGREEMENT ACCESS developers to agree on the key conditions, while leaving some room to finalise minor operational issues as the development progresses. This approach provides landholders with a level of DETAILED ASSESSMENT certainty about the final value of the lease, pending the results
OPTION TO LEASE AGREEMENT TO OPTION of feasibility assessments.
PLANNING Other landholders have chosen to negotiate an option to APPLICATION lease agreement covering all conditions of the eventual lease, thereby removing the need for further negotiation.
CONSTRUCTION The precise wording of the agreement is a matter for negotiation between the landholder and the developer. More commonly the developer prepares the first draft of OPERATION the agreement, although in some instances landholders
LEASE AGREEMENT have preferred to take responsibility for this drafting (notwithstanding the time and expense this may entail). DECOMMISSIONING Once a first draft has been prepared either party can propose further revisions before the agreement is finalised - subject to some legal constraints, the terms of the agreement are a Figure 13 Typical contract arrangements matter for commercial negotiation between landholder and wind farm developer.
Wind Farm Guide for Host Landholders 21 Review and expiry of agreements The extent to which a Landholder has control over micro- siting will depend on the terms of the legal agreements As noted above in Section 4.3 the terms of the option to lease between the Landholder and the developer for development normally prevent the landholder from negotiating with other of the wind farm. wind farm developers until the option to lease period expires. 6.2.3 Lease agreements The length of the option to lease period is one of the aspects that can be negotiated between parties. Before construction commences the option to lease will normally be exercised and the wind farm developer will enter Changes to proposed location of wind turbines into a lease agreement with the landholder. Lease agreements will normally be for the life of the wind farm (generally 25 Developers will often reserve the right to adjust the final years with an option for renewal) and will cover the turbine, position of turbines. This process is commonly referred to as substation and ancillary building areas. Lease agreements ‘micro-siting’. will normally only be entered into once construction has been confirmed. Commonly planning approvals allow developers to move turbine locations by up to 100m so long as the environmental There is no standard wind farm lease agreement; however a impacts do not change. typical lease will confer the following rights and obligations for landholders (Table 1).
Table 1 Common landholder rights and obligations within lease agreements Landholder Rights • To continue farming operations in and around the site once construction is complete (subject to certain restrictions) • To sell or sub-let the property (under certain conditions) • To review information used to determine remuneration (e.g. electricity generation) • To have site security and biosecurity protocols protected • To have certain input into project design (e.g. fences and laneways) • To have the site rehabilitated following decommissioning Obligations • To accommodate the construction and ongoing operation of the wind farm facility (e.g. providing access to property, removing livestock where necessary for construction etc).
• Not to enter into arrangements with other wind farm developers • Not to develop high structures around the wind turbines (to avoid disturbing the air flow) • Not to disclose details of the agreement (e.g. payment per turbine).
22 Wind Farm Guide for Host Landholders “Get a good lawyer with experience in commercial contracts, it will be money well spent” —Comment from wind farm landholder (2012 Focus Group)
6.3 Other types of legal agreements and arrangements 6.3.3 Crown land development agreements
In certain circumstances, other types of agreements and For a development to proceed on land currently leased from arrangements can be entered into between landholders and the Crown under either the Crown Lands Act 1989 or the developers. These include: Western Lands Act 1901 the developer will need to obtain:
• land purchase; • the Crown’s position in regard to progressing • easements for support infrastructure; investigation for a Wind Farm; and • crown land development agreements; and • consent to allow the development under cover of the • community wind farm developments. existing lease OR by way of a new Special Purposes Lease from the Crown. A Special Purposes Lease will not be issued by the Crown 6.3.1 Land purchase unless the developer obtains the written consent of the Occasionally developers may purchase properties required existing lessee (normally the farmer with the right to graze on for development. Most commonly this will be where the lot is that land). small and/or the proposed infrastructure takes up most of the lot. Generally, however, developers lease rather than own wind An agreement just between a lessee and a developer to farm sites. provide consent will not, in legal terms, be a lease and will not authorise the development to be carried out on Crown Land. 6.3.2 Easements for support infrastructure The agreement could, however, be drafted to address the same types of issues that a lease agreement would normally Easement agreements may be entered into to allow the cover for development occurring on private land. passage of cables, transmission lines or access roads through a landholder’s property.
Easements may be implemented as part of a lease agreement with host landholders, or as a stand-alone arrangement with neighbouring landholders whose property is required for support infrastructure.
Easements are registered on the Title to the property, with Land and Property Information in NSW, and are automatically transferred when land changes hands.
Figure 14 Sunrise at Waterloo Wind Farm, SA17
Wind Farm Guide for Host Landholders 23 Silverton Wind Farm 6.3.4 Community wind farm developments
The Silverton Wind Farm (stage 1 and 2), located north of Broken Community organisations can also undertake their own wind Hill, has been approved but not yet constructed. The former Land and Property Management Authority (LPMA) negotiated the legal developments, by funding and/or leading projects. These and operational framework that will allow the proposed wind farm are commonly known as Community Renewable Energy to be established. Agreements were reached by the LPMA both (CRE) projects. There are a variety of different community with the wind farm proponent as well as the four current western ownership and participation models for community wind farm lands lessees affected by the development. developments. Internationally there have been “hundreds if not thousands” of CRE projects.18 The consents from the existing pastoral lessees provide the mechanism for a Special Purposes Lease (parallel lease) to be entered into between the LPMA and the developer thus providing There is currently one operational large-scale community the security of tenure the developer requires. wind farm development in Australia, the 4.1MW, two turbine Hepburn Wind Farm at Leonards Hill, Victoria. There are LPMA negotiated an agreement for lease with the wind farm also a number of other community wind farm developments proponents, while the four pastoralists who currently lease western currently under investigation, including in NSW. division Crown land in the project area have agreed to the terms of consent deeds that provide their approval for the final special purpose lease to be entered into with the developer. The legal arrangements between community wind farm developments and landholders are generally similar to the As part of the process, the pastoral Lessees have also negotiated arrangements landholders have with commercial wind farm Operational Agreements with the wind farm developer that set out developments. the details of how both parties will operate and interact in regard to their respective activities on the same area of land. 6.4 Group negotiation As a result the proponents will have secure and guaranteed Crown leasehold title to the land and it will occupy the Crown land under Proposed wind farms are usually spread across a number of a parallel Crown land special purpose lease. separately owned parcels of land, requiring developers to deal with multiple landholders. This situation provides an Parallel leases, or two leases on the one parcel of land is permitted opportunity for landholders to negotiate collectively with the following changes to the Western Lands Act and Crown Lands Act wind farm developer. This type of group negotiation normally in 2011. occurs with the aim of reaching a collective agreement where In terms of compensation, some leaseholders have utilised legal the landholders will each host turbines on the same or similar services to assist them to negotiate. terms.
As with any type of group negotiation there can be advantages and disadvantages with group negotiation that need to be weighed up carefully by each member.
If landholders decide to negotiate as a group, careful management of negotiations is required. From the outset groups should decide the following:
• What will be negotiated - the actual lease agreements or just an overarching agreement on key matters (e.g. revenue) that individual leases will then be separately negotiated under? Even where group negotiation occurs, some things can be left to individual negotiations without compromising the integrity of group negotiations (e.g. access rights).
24 Wind Farm Guide for Host Landholders “Group negotiation can be difficult to manage but we found it was absolutely worthwhile, you just need to set some clear ground rules, manage expectations and keep members informed at all stages.” —Comment from wind farm landholder (2012 Focus Group)
• Who will negotiate? Will everyone be at the negotiating If remuneration is based on a variable factor (such as MWh table or just a group of representatives? If representatives generated), the amount you will receive will be subject are to negotiate, what authority do they have and how to project performance. These arrangements can allow will they consult with the group? landholders to benefit in changed circumstances (e.g. if • How binding will the negotiated agreement be? Can turbines are upgraded to a higher capacity). Landholders opt out and negotiate separately, or are they obliged to proceed with the negotiated agreement? Landholders should ensure they have access to the data that any performance payment calculation is based on, in order to • Will the group prepare the first draft of the lease verify payment amounts. agreement or will this be the developer’s responsibility? • What will happen if the development proposal is changed The index that payments are linked to, can also significantly and the location/number of turbines on the different affect the value of leases. Payments may be indexed to landholders land parcels is changed? economic growth generally, or to particular markets relevant • Is there a minimum number of turbines that must be to wind generation (e.g. electricity pricing). The landholder developed for the agreement to be binding? agreement will need to specify the base year that indexed • How will payment be apportioned between properties values are calculated from. with different levels of suitability for wind turbines, particularly different wind speeds? Will payment be Small differences in payment terms can have a significant performance related or will there be a standardised effect when compounded over the full term of the operational payment regardless of performance? lease. • What happens when land ownership changes? Does the Timing for payments can also be important. Because the agreement run with the land? Will additional landholders upfront capital costs of development are significant, some be allowed to become parties to the agreement once it is developers may prefer to establish contracts which offer finalised with the developer? landholders higher payments further along the development • How will costs incurred by the group (not covered by life cycle (e.g. in the second decade). the developer) be apportioned between members of the group? Finally, landholder agreements can have tax and financial If you wish to proceed with landholder group negotiations it is implications due to the additional income that hosting wind highly recommended that you seek expert legal advice. turbines can generate. Host landholders may find it helpful to involve their bank or professional advisor in the negotiation 6.5 Financial considerations and restrictions process, to ensure their finances are duly considered.
6.5.1 Different payment structures 6.5.2 How much can I expect?
Landholder payments are a key matter for negotiations. Criteria One of the challenges for landholders in negotiating that payments could be based on include: agreements is that it can be difficult to know how much remuneration they can reasonably expect to negotiate. • number of turbines constructed; Remuneration varies significantly and depends on a number of • turbine “name-plate” generation capacity (MW); factors including: • amount of electricity generated by wind farm (MWh); • the expected performance of turbines (wind speed); • windfarm footprint (m2); • the location of the site, particularly the distance from • revenue generated (“royalty”) (% of revenue); major transmission lines; • flat fee; or • competition for the right to place turbines on the site; • a combination of the above (or other) factors. • the importance of the particular site to the overall project success; and • market practice.
Wind Farm Guide for Host Landholders 25 “Having a steady, reliable income from our wind turbines has been fantastic for our farm business. We’re now able to make long-term plans to improve our property, knowing that we can survive short-term weather and commodity cycles.” —Comment from wind farm landholder (2012 Focus Group)
As noted in Section 6.4 financial outcomes may be improved of the 45 sales investigated did not show any reductions in where landholders work together to boost their bargaining value, while five properties were found to have lower than position. expected sale prices (though the study could not confirm that these results were a direct result of the wind farm, and not Landholders should think carefully before signing any a response to other factors). The study concluded that “the agreement which includes a confidentiality clause, as this may majority of wind farms erected in Australia appear to have had affect their ability to discuss remuneration with neighbours or no quantifiable effect on land values”. bargain collectively. NSW Farmers is able to put members in contact with other host landholders to discuss remuneration 6.5.5 Restrictions on the sale and/or future (see contact details in 11.1). development of land
Landholders should be aware of how the wind farm development may affect the sale or development of their land in the future.
Sale of land
The wind farm lease agreement will be registered on the title of the landholder, and should a transfer of the property occur through sale the purchaser will be required to agree to the terms of the operational lease agreement.
Planning restrictions
The installation of a wind farm may affect some future development from occuring on the land. These restrictions will depend on the particular local and State development controls that apply to the site. Implications for future Figure 15 Clements Gap Wind Farm, SA19 development of the land should be taken into account when 6.5.3 Impacts on host land value agreeing to host turbines.
Few studies in Australia have specifically assessed the Property subdivision potential impact of wind farm development on the value of host land. However a recent Senate inquiry20 concluded that: Landholders who have an intention of subdividing their land in the future, may want to investigate whether the proposed The value of properties that are hosts to wind turbines should wind farm would not limit subdivision and the potential for increase provided of course that the rights to rentals for the locating a dwelling on subdivided lots where appropriate. turbines are transferable with the sale of the property. Under s23F of the Conveyancing Act 1919, a plan for a lease of Host landholders may experience an increase in municipal land for more than 5 years (including any options of renewal) rates, if the value of the turbine development becomes constitutes a subdivision in terms of s4B of the Environmental reflected in the value of the land asset. Landholders should Planning and Assessment Act 1979 and s195(1) of the contact their local council to discuss potential impacts. Conveyancing Act and will consequently require subdivision consent. Wind farm leases do not normally trigger this 6.5.4 Impact on neighbouring land values requirement as they are treated by NSW Lands and Property Information as being leases for premises rather than land.22 21 A 2009 study commissioned by the NSW Valuer General Confirmation should, however, be sought that for a particular assessed the potential impact of wind farms on nearby land wind farm project subdivision consent will not be required. parcels. The study considered the sale results of 45 land For more information contact the Titling and Registry Services, parcels adjoining 8 wind farms. The results showed that 40 NSW Lands and Property Information (1300 052 637).
26 Wind Farm Guide for Host Landholders Property Vegetation Plans being developed on a neighbouring property in 1996.
Property Vegetation Plans (PVP) are voluntary, legally binding “I saw wind turbines as an opportunity to drought-proof my agreements between a landholder and the local Catchment property, encourage economic development in the Crookwell Management Authority (CMA) to enable certain types of region and also reduce carbon emissions”. clearing. PVPs are commonly applied to the land title and Charlie started to have discussions with wind farm companies will therefore transfer with any change of ownership. The around 2000 and 2001, including a number of wind farm brokers obligation to comply with PVP offset requirements falls on the who identify potential sites and establish landholder agreements. landholder. Eventually Charlie signed an agreement to lease in January 2004. An existing PVP may need to be varied if additional clearing of By mid-2004 the development application for the “Crookwell 2” wind farm had been submitted and almost a year later native vegetation is required to accommodate the proposed the application was approved, with 112 conditions attached wind farm development. Therefore landholders with an including a downgrading of capacity from 55 to 46 turbines. existing PVP, or looking to introduce a PVP, should discuss and negotiate this with their developer. Crookwell 2 is currently under construction, with 46 turbines planned. “Many landholders don’t appreciate the time it can PVPs are issued under the Native Vegetation Act 2003 (NV take for a wind farm development to be designed, approved and constructed. A wind farm is a long term development and needs Act). If a wind farm development is not State Significant careful consideration by all parties; however it is in landholder’s Development (SSD) (see Section 7.1 for more information interest to make sure their developer is committed to developing on what types of development are SSD) approval under the the asset and is making progress towards construction. This can NV Act may be required for clearing that is required for the be achieved by building in milestone dates into agreements”. installation of the wind farm (including, particularly, the construction of access roads). “A wind farm is a long-term development and needs careful consideration by all parties; however it is in the landholder’s interest to make sure their developer is seriously committed to Development restrictions constructing the wind farm and is making progress towards this construction. This can be achieved by building milestone dates The wind farm lease agreement may contain controls on the into agreements.” types of other development that can occur on the land once Charlie encourages potential host landholders to talk with the wind farm is installed. Restrictions on agroforestry, PVPs, other host landholders and visit existing wind farms to share blasting and extractive mining are the most common. The experiences and to see and experience wind farms first hand. impact of these restrictions on future development potential will be site dependent. Charlie also believes it is important for landholders to be open and honest with their neighbours about their plans, listen to their 6.5.6 Land access issues concerns and be accommodating where possible. “Nine turbines were removed from our plan, as a compromise to Host landholders can negotiate and specify in lease agreements neighbours’ concerns.” the protocol for land access. Some contracts include provisions for stock grids, vehicle wash-down, sign in books, speed limits, Charlie is looking forward to having a secure passive income marked vehicles, roadside weed control etc. source which will help relieve production pressure on his farm, and therefore allow him to take better care of his land, a better In addition it is important to ensure that operators have public outcome for all. liability insurance cover for any property damage, e.g. fences, livestock etc. Landholders may seek to have operators cover Charlie’s advice for potential host landholders: any increase in farm insurance costs. • engage a lawyer with experience in corporate contracts 6.6 Case Study: Charlie Prell, ‘Gundowringa’, Crookwell • visit a wind farm • have milestone dates inserted into your contract to ensure your Charlie Prell is a grazier from Crookwell, near Goulburn NSW, who has more than 10 years experience in having a wind farm developer is moving towards construction established on his property. • don’t rush into signing a contract you are not completely happy with. Being approached means that you own an asset that is Charlie started to consider his property’s potential to host turbines significant and real. after he watched a small 8 turbine wind farm (“Crookwell 1”)
Wind Farm Guide for Host Landholders 27 28 Wind Farm Guide for Host Landholders Planning and Development 7
This Section outlines the activities in the planning and Table 2 Key steps in the planning process for SSD (as at development phase of the wind farm. These activities include December 2012) the following: Step Explanation • design and layout of the wind farm; Development The developer will submit a DA with the NSW Application (DA) Department of Planning and Infrastructure • completion of an Environmental Impact Statement (EIS); (DP&I). • completion of the planning approvals process; Director General The Director General will issue specific • grid connection (including transmission line); Requirements requirements which must be addressed in the Environmental Impact Statement (EIS). • planning approvals; and (DGRs) released • community and stakeholder consultation. Environmental The developer will complete necessary Impact Statement environmental monitoring and assessments, Managing landholder and local resident’s expectations in term and submit the EIS and completed DA with of timing is critical as wind farm developments can have long DP&I. lead-in times (for example the Capital Wind Farm took over Consultation DP&I will exhibit the DA with EIS for at seven years from initial assessments to operation). least 60 days and notify local council(s) and landowners. 7.1 The NSW Wind Farm Planning Process DP&I also assesses the EIS with other agencies. Decision DP&I will make recommendations to the The planning requirements for wind farms in NSW are Planning Assessment Commission (PAC). contained in the Environmental Planning and Assessment Act The PAC will then consider the 1979 (EP&A Act). recommendations and may hold a community. Appeal rights Parties have 12 months to appeal consent 7.1.1 Key steps in the planning process decisions.
Wind farms involving capital investment of more than $30 7.1.2 Key issues to be addressed in the DA and EIS million or more, or $10 million in an environmentally sensitive area are classified as State Significant Developments (SSD) Wind developers will need to prepare a number of technical under the EP&A Act. The majority of commercial wind farm studies as part of their DA and EIS. These studies can be useful development in NSW is expected to meet these criteria and to landholders in understanding the impacts of the wind farm this Guide is therefore focussed on projects that are SSD. development on their land. The technical studies required will commonly include: If a project is not classified as SSD under the EP&A Act, • assessment of visual impacts (including visual amenity different legislation, regulations may also apply that are not and shadow flicker); covered in this Guide. If a proposed development is on Crown Leasehold land the Crown’s consent, as land owner, is required • report on community consultation; when lodging a development application. • assessment of traffic and transportation impacts; • assessment of impacts on flora and fauna; The basic approvals process for SSD wind farm development is • assessment of impacts on Cultural heritage; outlined in Table 2 below. • assessment of any noise impacts; and • a decommissioning plan. While the developer will lead the EIS development, host landholders may be asked to assist by providing information about the site etc.
Wind Farm Guide for Host Landholders 29 7.1.3 Draft Planning Guidelines 7.2.1 Making sure your developer is engaging effectively
The NSW Government has developed the Draft NSW Planning While there are a number of different approaches to Guidelines: Wind Farms which are intended to act as a consulting with the local community and no “one-size-fits-all” framework document for applying the requirements of the answer, it is in host landholders’ interests to make sure the EP&A Act to wind farm development. The Draft Planning developer is engaging effectively with the community. Host Guidelines outline processes for community consultation landholders can help developers with community engagement during wind farm development and provide guidance on by advising developers on the most effective ways to engage measuring and assessing environmental impacts. At the time with the community (e.g. information days, site visits, one- of this Guide’s publication the Draft Planning Guidelines were on-one meetings, community sponsorship opportunities) and being reviewed by the NSW Department of Planning and also, if appropriate, participating in consultation exercises. Infrastructure following a public consultation process.
A copy of the Draft Planning Guidelines is available at: http://www. 7.2.2 Participating in CCCs planning.nsw.gov.au/Development/Onexhibition/tabid/205/ctl/ View/mid/1081/ID/66/language/en-AU/Default.aspx. Community Consultative Committees (CCC) provide a forum for open discussions between the wind farm developer, 7.2 Engaging with local stakeholders the community, the Council and other stakeholders on environmental and operational issues relating to the wind Local stakeholders in the community have a strong and farm. Common in the minerals sector, CCC’s are increasingly legitimate interest in the planning and assessment process for being used in the wind industry as a community engagement wind farms in their area. tool (and are included in the Draft Guidelines as a proposed planning requirement). Host landholders may wish to Community consultation is a critical process requiring wind encourage their developer to voluntarily establish a CCC developers to demonstrate an ongoing commitment to in order to provide an avenue for community concerns to provide information and ensure opportunities for input. be heard. Host landholders may also want to participate Effective community consultation helps ensure: personally on the CCC. • the community genuinely understands the proposal and its potential impacts (positive and negative); 7.2.3 When and how to inform your neighbours
• the proponent genuinely understands community Landholders can choose to be pro-active and inform concerns, and these concerns are comprehensively and neighbours or wait for neighbours to receive official transparently addressed in the design and development notification from developers. At a minimum, neighbours of the wind farm proposal. and the community should be informed about the project Host landholders can help with the process of engaging local once the developer feels that the wind farm has prospects of stakeholders by: progressing.
• explaining the proposal to the community; It is recommended to have a coordinated approach with the • advising developers about how best to engage with the developer to make sure the right information is provided at community; the right time. • advising developers about how community concerns could be addressed (e.g. through specific design 7.2.4 Identifying common issues and concerns changes). It is recommended that landholders and landholders agree Many landholders have found that the best approach to early on the extent to which landholders will be expected to community consultation it to openly engage with neighbours contribute to this process. before negotiations with developers begin, to identify issues and concerns. This approach often finds that landholders and The Clean Energy Council’s Best Practice Community residents have very similar issues and concerns, regardless Engagement Guidelines, is a useful resource for effective of whether they are potential hosts or not. If these common engagement. concerns can be documented early and adequately addressed before and during developer negotiations, there is a reduced chance of community divisions arising.
30 Wind Farm Guide for Host Landholders “My advice would be to always be upfront with your neighbours and maintain personal contact. Inform them of your plans early and let them know when plans change. If disagreements arise you can still maintain civil even friendly relationships.” —Comment from wind farm landholder (2012 Focus Group)
7.2.5 Making economic contributions to the community
In certain cases developers may choose to make additional economic contributions to the community, either as a means of compensating for potential impacts or simply as a goodwill gesture. In some cases host landholders have made provisions in their contracts for a proportion of funding to be allocated to community benefits (possibly via a trust fund). Decisions about how the funding is distributed could rest with:
• the host landholders; • the local Council; or • a community representative committee. 7.2.6 How to deal with other host landholders
Wind farm developments will usually involve more than one landholder. While land agreement negotiations are conducted separately, a healthy relationship between adjoining host landholders can be very beneficial in negotiating with developers on operational issues and dealing with community concern. See Section 6.4 for more information on group negotiations.
7.2.7 How to deal with objections and complaints
Objections and complaints can occur during development, during construction and operation. Landholders should make clear arrangements with developers about who is responsible for fielding objections and complaints and the course of action.
Wind Farm Guide for Host Landholders 31 Wind Farm Guide for Host Landholders 32 Construction 8
The construction phase can have a number of potential impacts for host landholders relating to road construction, turbine access, stock management, noise, dust and traffic. Effective management of these impacts is a focus of the planning approval process, and developers are generally willing to work with landholders to mitigate or minimise impacts. 8.1 Construction of access roads
Figure 17 Road construction, Woodlawn Wind Farm, Bungendore, NSW24 8.2 Access considerations
The wind farm developer will require a significant level of access to the site during construction. Access required will include for:
• vehicles for delivery of components, foundation construction and laying of underground cables; 23 Figure 16 Construction of Woodlawn Wind Farm, Bungendore, NSW • cranes for erection of the towers and turbine and blade Construction of access roads for wind farm access may installation; and generate noise, dust and cause interference with watercourses • cranes for commissioning checks, maintenance and repair. and vegetation. Water management needs to be considered, These access requirements can not only result in increased and roads designed to avoid slips, minimise the removal vehicle movements in the local area, but can also have of vegetation and avoid scars on the landscape. Dust from impacts on stock management and biosecurity protection if access construction processes can be addressed by seeding not appropriately managed. Clear guidelines between the temporarily or occasionally watering stockpiled soil material. landholder and wind farm developer can usually minimise these impacts without adversely affecting the wind farm construction process.
Wind Farm Guide for Host Landholders 33 “Construction can be a major interruption to your property, so you should make sure your contract specifies what is acceptable and unacceptable”. —Comment from wind farm landholder (2012 Focus Group)
8.3 Turbine Construction 8.5 Ecological and environmental considerations
Turbines are constructed by first building an underground The project planning approval may require construction to be solid concrete base. The extracted material can be used in timed to avoid migration and nesting periods for birds in the road building. Towers are typically transported to the site in area, and to minimise erosion of exposed surfaces by rain or sections and constructed using cranes. wind. To facilitate revegetation post-construction temporary fencing and/or the planting or native grasses and/or shrub species may be required.
Figure 18 Turbine Base Construction, Woodlawn Wind Farm, Figure 19 Turbine Base Construction, Woodlawn Wind Farm, Bungendore, NSW25 Bungendore, NSW26
8.4 Stock Management 8.6 Safety and traffic
During construction livestock will need to be kept away from As a construction site, members of the public will typically be excavations for cabling and tower foundations. The impact of excluded during construction. Temporary fencing and signage this on farm management (and, particularly, available grazing may be used for this purpose. land) may need to be managed with the wind farm developer. As noted above, increased levels of site access may require changes in stock management processes but may also present an opportunity to develop new stock laneway systems.
34 Wind Farm Guide for Host Landholders 8.7 Construction noise
Similar to all construction sites, building a wind farm will generate noise associated with large vehicle movement, excavation and construction of foundations (e.g. blasting in some cases) and structures such as switchyards. Being associated with construction, these noise impacts will be temporary only and will normally be subject to prescribed controls in the development approval.
Figure 20 Turbine Construction, Woodlawn Wind Farm, Bungendore, NSW 8.8 Temporary buildings and parking
During wind farm construction some temporary on-site workers’ and storage facilities such as site offices, portable toilets, storage areas and vehicle parking may be required. The impact of these structures will normally be minimal as a result of their temporary placement.
Wind Farm Guide for Host Landholders 35 36 Wind Farm Guide for Host Landholders Operation 9
“You get used to having maintenance staff and contractors coming and going from your property. The new roads have made my farm much more manageable for livestock movement and in the event of a fire.” —Comment from wind farm landholder (2012 Focus Group)
Wind farms are operated according to a planned maintenance 9.1 Wind Farm Regulation schedule. Landholders can ensure they have input into the operation of the wind farm, through ongoing engagement Local councils are currently the Appropriate Regulatory with the wind farm operator and other host and non-host Authority (ARA) for regulation of all wind farms under the landholders (including, potentially, through the CCC if Protection of the Environment Operations Act 1997 (POEO established). Act). Wind farm noise is a complex issue and wind turbines have unique noise generating characteristics including a noise output that varies with wind speed and their location.
In many cases, local councils have reported that they do not have the necessary resources or expertise to effectively regulate noise from large-scale wind farms. The NSW Government has decided that large-scale wind farms should be regulated by the Environmental Protection Authority (EPA) under an Environment Protection Licence. This is because the EPA is better placed to deal with complex noise issues, has the necessary expertise and has a robust regulatory framework for licensing activities.
The EPA is progressing the necessary regulatory amendments to put this into place. For the latest information on this see http://www.environment.nsw.gov.au/licensing/windfarms. Figure 21 Access road to turbine28 htm.
9.2 Maintenance and monitoring
Wind farms can be operated from either on site premises or from a remote off site location. Maintenance operations, however, will require access onsite to the turbines. Strict health and safety requirements apply to personnel undertaking tower and turbine maintenance operation. Most scheduled maintenance can be undertaken using internal tower access, but major repairs may require crane access to the site.
9.3 Management of tourist traffic
Landholders sometimes experience an increase in tourist traffic once wind farms are built. Access roads may require clear signage to deter unauthorised vehicles from entering the property. In some cases local councils have assisted by establishing lookouts where tourists can view the turbines.
Wind Farm Guide for Host Landholders 37 38 Wind Farm Guide for Host Landholders Decommissioning 10
10.3 Developer rights and obligations during decommissioning
In most cases the proponent/wind farm owner rather than the host landholder is responsible for decommissioning. The planning approval process normally requires a Decommissioning and Rehabilitation Plan (DRP) to be prepared. Typically DRPs address the management of:
• turbines and the associated concrete slab (including removal of inactive turbines); • any associated structures including public viewing facilities; • site transmission cabling and control room; • electricity substation, switchyard, overhead transmission lines connected to the grid;
Figure 22 Sunset at Waterloo Wind Farm, SA29 • access roads (according to the wishes of the landholder); • disposal arrangements for non-recyclable components; Landholders should understand their rights with regards to removal of infrastructure and land rehabilitation before • revegetation; and agreeing to host wind turbines on their property. When a • community impacts. wind farm is decommissioned, all above-ground elements A decommissioning bond may be required if the DRP is are removed and the site is restored to its original condition. deemed to be inadequate. Generally, however, underground cabling may be left in the ground, and roads left as is. The decommissioning process It is important for landholders to understand their rights and usually takes around six months. responsibilities during the decommissioning phase. 10.1 Wind farm lifespan
The technical design life of a wind turbine is currently 20 to 30 years. This represents the period of time where it is more cost effective to service a turbine rather than replacing it. The turbine gearboxes will typically require an oil change every three years while bearings may need to be replaced after a ten year period.
Many wind farms in NSW have not reached their technical lifespan however in Europe some farms have been reconditioned following the ‘completion’ of the design life.
10.2 Developers right for early lease termination
Certain lease agreements allow developers to terminate an operational lease early if they wish to decommission the towers.
Wind Farm Guide for Host Landholders 39 Wind Farm Guide for Host Landholders 40 Where to go for more advice 11
11.1 NSW Farmers
NSW Farmers is Australia’s largest state farming organisation representing farmers, rural and regional communities.
We work closely with kindred organisations and stakeholders to secure a sustainable agricultural future for our members, the communities in which they live and for all Australians.
We are not a government organisation. Instead, we represent NAME POSITION AREA REGIONS Liz Scarlett Member Service the grassroots views and aspirations of our farmer members in 0428 411 218 & Sales Manager Emily Colless RSM West Region 3 & 12 Macquarie Street and Canberra. 0400 116 207 NAME POSITION AREA REGIONS Darren Greentree RSM Central Region 4 & 6 Liz Scarlett Member Service 0427 411 214 0428 411 218 & Sales Manager Stuart Murdoch RSM Northern Region 1 & 2 NSW Farmers’ strategic objective is to advocate for public Emily Colless RSM West Region 3 & 12 0427 437 103 0400 116 207 policies that are financially viable, innovative, environmentally Michael Burt RSM Coast Region 13 & 7 Darren Greentree RSM Central Region 4 & 6 0428 228 988 and socially responsible and attuned to community 0427 411 214 Alix McFarland RSM South Region 8, 9 & 5 Stuart Murdoch RSM Northern Region 1 & 2 0427 773 495 West expectations. 0427 437 103 David Banham RSM Southern Region 10 & 11 Michael Burt RSM Coast Region 13 & 7 0428 411 221 0428 228 988 Sarah Button Regional Alix McFarland RSM South Region 8, 9 & 5 Host landholders can contact the associations member Advisor/Support 0427 773 495 West Jeff Kennedy Office Manager service centre on 1300 794 000, or their local Regional Service David Banham RSM Southern Region 10 & 11 1300 794 000 0428 411 221 Manager (map and contact details provided in Figure 23 Elise Routledge Member Service Sarah Button Regional 1300 794 000 Centre below). Advisor/Support Jeff Kennedy Office Manager 1300 794 000 Elise Routledge Member Service 1300 794 000 Centre NAME POSITION AREA REGIONS Liz Scarlett Member Service 0428 411 218 & Sales Manager Emily Colless RSM West Region 3 & 12 0400 116 207 Darren Greentree RSM Central Region 4 & 6 0427 411 214 Stuart Murdoch RSM Northern Region 1 & 2 0427 437 103 Michael Burt RSM Coast Region 13 & 7 0428 228 988 Alix McFarland RSM South Region 8, 9 & 5 0427 773 495 West David Banham RSM Southern Region 10 & 11 0428 411 221 Sarah Button Regional Advisor/Support Jeff Kennedy Office Manager 1300 794 000 Elise Routledge Member Service 1300 794 000 Centre
Figure 23 NSW Farmers Regional Service Managers and other contacts
Wind Farm Guide for Host Landholders 41 11.2 Renewable Energy Precinct Coordinators Table 3 NSW Renewable Energy Precinct Coordinators
An important contact for host landholders is their local NSW Role Operation Renewable Energy Precinct Coordinators (Table 3). These New England North [email protected]. regionally based coordinators are employed by the NSW Office West Coordinator gov.au of Environment and Heritage, to help drive regional initiatives 0457 593 827 and lead stakeholder engagement to enhance knowledge, Upper Hunter [email protected]. understanding and uptake of renewable energy. Coordinator au For more information on the program visit http://www. 0457 593 991 environment.nsw.gov.au/climatechange/renewableprecincts. Central West grant.christopherson@environment. htm. Coordinator nsw.gov.au 0457 594 193
NSW/ACT Coordinator chris.mackenziedavey@environment. (East) nsw.gov.au 0457 593 266
NSW/ACT Coordinator [email protected]. (West) gov.au 0437 574 703 Snowy-Monaro [email protected]. and South Coast au Coordinator 0432 064 727
42 Wind Farm Guide for Host Landholders 11.3 Other key resources
There are a range of other sources of advice within government and industry, which can assist landholders in different aspects of wind farm development. Table 4 below lists some key organisations Table 4 Key organisations
Organisation Role Contact NSW Office of Environment Provides information on renewable energy in NSW. 131 555 and Heritage http://www.environment.nsw.gov.au/
Department of Planning and Manages the planning and approvals process for wind 02 9228 6111 Infrastructure farms http://www.planning.nsw.gov.au/ NSW Department of Trade Supports, regulates and monitors the NSW energy 1300 136 888 and Investment industry. http://www.trade.nsw.gov.au/energy/ sustainable/renewable/wind
Clean Energy Council Peak body representing Australia’s clean energy sector, 03 9929 4100 including wind farm developers. Provides information and http://www.cleanenergycouncil.org.au/ services to improve understanding about wind energy.
NSW Office of Fair Trading Manages complaints about business practices. 13 32 20 http://www.fairtrading.nsw.gov.au/default. html
Law Society Provides information on legal professionals including 02 9926 0333 those with particular experience in advising landholders. http://www.lawsociety.com.au/ Department of Primary Works in collaboration with existing NSW Government Cheryl Pope (Orange) Industries Rural Support programs and community based service providers and 02 6391 3948 [email protected] Program agencies to build the capacity and resilience of rural Dick Kearins (Goulburn) communities. 02 4828 6614 [email protected] Di Pritchard (Albury) 02 6051 7703 [email protected] Jennifer Haberecht (Grafton) 02 6640 1600 [email protected]. gov.au
Wind Farm Guide for Host Landholders 43 There are also a range of online resources which can assist host landholders (see Table 5 below).
Table 5 Key documents
Documents Issues Contact/Link Wind Energy Atlas • Site suitability http://www.trade.nsw.gov.au/energy/sustainable/ Sustainable Energy Development Authority renewable/wind/sustain_renew_wind_atlas_ poster.pdf Draft NSW Planning Guidelines Wind Farms • Planning requirements http://www.planning.nsw.gov.au/LinkClick. aspx?fileticket=5yeY6yw_wRE%3D&tabid=205&mi NSW Planning and Infrastructure • Consultation requirements d=1081&language=en-AU
Community Attitudes to Wind Farms in NSW • Community attitudes http://www.environment.nsw.gov.au/resources/ Office on Environment and Heritage climatechange/10947WindFarms_Final.pdf
Wind turbine & low frequency noise fact • Noise impacts http://www.cleanenergycouncil.org.au/cec/ sheets technologies/wind/turbinefactsheets Clean Energy Council
Public Statement: Wind Turbines and Health • Health impacts http://www.nhmrc.gov.au/_files_nhmrc/ National Health and Medical Research Council publications/attachments/new0048_public_ statement_wind_turbines_and_health.pdf
Wind farm Policy • Aerial agriculture http://www.aerialag.com.au/Portals/0/ Aerial Agricultural Association of Australia Users/005/05/5/AAAA%20Windfarm%20Policy.pdf
The Rural Landholders’ Guide to • Environmental law http://www.edo.org.au/edonsw/site/pdf/pubs/ Environmental Law in NSW rural_landholders_3rd_ed.pdf Environmental Defenders Office
DRAFT NSW Renewable Energy Action Plan • Renewable energy policy http://haveyoursay.nsw.gov.au/document/ NSW Government show/475
44 Wind Farm Guide for Host Landholders Wind Farm Guide for Host Landholders 45 Cover image: GHD Pty Ltd 16CSIRO (2012). Acceptance of rural wind farms in Australia: a snapshot.
Chapter image 8: Infigen Enerty Pty Ltd 18Hicks J and Ison N (2011) Community-owned renewable energy (CRE): Opportunities for rural Australia, Rural Society Chapter images 9, 10, 11: Clean Energy Council 20:244-255, at 244. 19Clean Energy Council
1Mr D Clarke 20Inquiry into the Social and Economic Impacts of Rural Wind Farms (2011) Interim Report, Commonwealth of Australia 2011 2NSW Office of Environment and Heritage (2010) NSW Small Wind Turbine Consumer Guide,
22 5NSW Office of Environment and Heritage NSW Land and Property Information, Windfarms,
14See endnote 15 above.
15NSW Department of Planning & Infrastructure (2011), NSW Planning Guidelines: Wind Farms,